April 27, 2017

Future of Welsh lamb remains uncertain

Welsh lamb has had protected status by European law since July 2003 and is worth (approximately) £200 million to the Welsh economy.

35 percent of sheep meat produced in Wales is exported to the European Union. EU has 93 percent of the Welsh lamb export market. Welsh lamb exports to the EU have been rising every year since 2007.

Theresa May and New Zealand Prime Minister Bill English met in January to discuss post-Brexit free trade deal between the two countries.

Farmers’ Union of Wales fears bilateral trade deal with New Zealand will price Welsh lamb off the shelves in the UK.

In 2014, £240m was given to Welsh Farmers in direct payments alone. Half made a loss, or would have done so that year, without those payments.

There is uncertainty over any potential export deal of Welsh lamb to the US. In July 2016, the government put out a press release suggesting such a deal was imminent.

However, no progress has been made since then, and reports that Donald Trump is putting a trade deal with the EU ahead of the US is cause for concern. Foreign Minister George Eustice, in response to a written question from Liberal Democrat MP Mark Williams, stated:

“The US authorities are conducting the necessary steps to formally lift their restrictions on exports of EU lamb to the US. Defra is working with the US authorities to ensure exports of lamb from the UK can commence as quickly as possible once the restrictions have been lifted.”

Supposing the UK leaves the single market and has to rely on World Trade Organisation rules, the extra cost of exporting UK lamb would be £90 million a year.

There are no guarantees over what proportion of a UK agriculture budget would come to Wales. If Wales’ proportion reflected current allocations, Wales would be worse off by around £85 million per annum.

Without the profits made by Welsh lamb, the Welsh Assembly would struggle to subsidise Welsh farming and many farmers will be lost.

12. What steps he is taking to ensure protection of the Welsh sheep meat trade in negotiations on the UK leaving the EU. [909882]

The Government are working hard to get the very best deal for the United Kingdom—a free trade deal with the EU that is more ambitious than any other trade deal yet struck. We are considering and analysing the impact of future trading arrangements on all sectors of our economy, including agriculture, developing policies to support our vision for a global Britain that is producing more, selling more and exporting more.

That answer was characteristically vacuous and meaningless: could the Minister try to concentrate? Welsh farmers are saying that the door is open to New Zealand competition that could clear Welsh lamb off the shelves because of the price, and the door is not open to new markets in the United States, although that was promised. The Minister will understand the cultural priority of maintaining life on Welsh farms, where one of the most ancient languages in the whole of Europe prospers at its purest and best. Is it not a major priority for the Government to give a guarantee to Welsh farmers?

May I say that I represent many more Welsh farmers than the hon. Gentleman does, and that I intend to continue to do so after the general election? The Government are intent on securing the best possible free trade agreement for this country, which will benefit all farmers, including Welsh farmers. Furthermore, we intend to ensure that Welsh exports continue after the general election.